Do these sentences resonate? 👇
- "I'm so stressed about my credit card debt, I can't even sleep at night."
- "I just keep swiping, I'll worry about the bill later."
- "Everyone's in debt, right? It's just a normal part of life."
We get it. It's easy to fall into the trap of overspending, but credit card debt can be a major source of stress and anxiety and it can hold you back from achieving your financial goals. BUT don't worry, we're here to help you break free! 💪 Let's dive into the world of credit card debt and explore some strategies to tackle it head-on.
"A budget is you telling your money where to go instead of wondering where it went" - Dave Ramsey
What is credit card debt and why is it a problem?
Credit card debt is the amount of money you owe to your credit card company. It can accumulate quickly if you're not careful, especially with high interest rates. This debt can lead to stress, anxiety, and can even damage your credit score, making it harder to get loans or rent an apartment in the future.
Why is credit card debt a big deal for Gen Z?
We're starting out: Many of us are just beginning our financial journeys, and credit card debt can set us back early on.
Tempting Traps: "Buy now, pay later" programs and easy access to credit can make it tempting to overspend.
Lack of Financial Literacy: Many of us didn't receive formal education about personal finance, making us more vulnerable to debt. As USA Today reports, "more than 50% of Generation Z enter adulthood without a formal education in financial literacy."
Social Pressure: We're constantly bombarded with messages telling us to buy the latest gadgets, clothes, and experiences. It can be hard to resist the pressure to keep up with the Joneses (or the Kardashians!).
How much credit card debt do we actually have?
Contrary to popular belief, Gen Z actually has the lowest average total debt compared to other generations, according to a Forbes report.
However, "credit card balances [are] up more than 50% for Gen Z and millennial members since March 2022," according to Credit Karma data cited in Forbes.
This suggests that while we may not be "drowning in debt" yet, we are increasingly relying on credit cards.
What can we do about it?
- 📝 Create a Budget: Knowledge is power! Start by tracking your income and expenses to see where your money is actually going. This will help you identify areas where you can cut back and free up more cash to throw at those credit card balances. There are tons of budgeting apps out there, or you can go old-school with a spreadsheet or notebook.
- ❄️Build a Payment Plan: Don't just wing it! Come up with a solid plan to tackle your debt. Two popular methods are the debt snowball (paying off the smallest debts first for a psychological boost) and the debt avalanche (targeting the highest interest rates first to save money). Check out NerdWallet's guide for more info on these strategies.
- ✂️ Cut Expenses: Time to get creative! Look for ways to trim your spending, both big and small. Can you make your coffee at home instead of hitting the coffee shop every day? Pack your lunch instead of eating out? Downsize your apartment or get a roommate? Every little bit helps!
- 🤑 Increase Income: Think outside the 9-to-5! Side hustles are a great way to bring in extra cash that you can use to pay down debt faster. What are you good at? Could you freelance, tutor, drive for a ride-sharing service, or sell crafts online?
- 📞 Negotiate with Creditors: Don't be afraid to pick up the phone and talk to your credit card company. You might be able to negotiate a lower interest rate or get enrolled in a hardship program,
Taking control of your credit card debt is a journey, not a sprint. It requires a combination of self-awareness, smart strategies, and a willingness to seek help when needed. But trust us, the freedom and peace of mind that come with being debt-free are worth it!
"Financial freedom is available to those who learn about it and work for it." - Michelle Singletary
Before making any major decisions about tackling your credit card debt, it's crucial to do some soul-searching. Here are five questions to help you figure out the best approach for YOU:
- How much credit card debt do YOU have?
- What are YOUr spending habits?
- What are YOUr financial goals?
- What are YOUr best options for tackling debt?
- What do YOU want to learn about debt in your personal finance journey?
"When you understand that your self-worth is not determined by your net-worth, then you’ll have financial freedom."
Click on the dropdowns below to see the easy action items:
Do one of these things TODAY 👇
- Track your spending. Use a budgeting app or spreadsheet to see where your money is going.
- Create a debt repayment plan. Choose a strategy that motivates you, like the debt snowball or debt avalanche method.
- Reach out to your credit card company. Inquire about hardship programs or negotiate lower interest rates.
Say one (or all) of these affirmations out loud 👇
- "I am committed to taking control of my finances."
- "I am capable of making smart financial decisions."
- "I am worthy of financial freedom."
- "I am releasing the burden of debt and embracing abundance."
- "I am creating a secure and fulfilling financial future."
Channel that feeling 👇
Feeling overwhelmed? Take a deep breath and break down the process into smaller steps. Start with one small action, like tracking your spending for a week.
Feeling motivated? Awesome! Keep the momentum going by setting realistic goals and celebrating your progress.
Feeling lost or confused? That's okay. Reach out to a financial advisor or credit counselor for guidance and support.
Some vibes to close us out
Credit card debt can feel overwhelming, but remember, you're not alone.
Take control of your finances, one step at a time.
With determination and the right strategies, you can break free from debt and achieve your financial goals.
YOU got this. 💭✨
Sources
- "Worried about money? Women and Gen Z are the most stressed, new research finds" USA Today (2025).
- "No, Gen Z Is Not ‘Drowning In Debt’ More Than Other Generations" Forbes (2024).
- "How to Get Out of Credit Card Debt: A 5-Step Guide" NerdWallet (2024).
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